1.33 Conflict of Interest, Conflict of Commitment, and Outside Activities

I. POLICY STATEMENT

By engaging in certain activities or work outside of UTSA, UTSA faculty or staff can enhance the mission of UTSA or provide important elements of their professional development relating to their UTSA responsibilities. Regents’ Rule 30104 (“Rule”) permits UTSA employees to engage in Outside Board Service or Activity, so long as such service or activity complies with the requirements of the Rule and does not violate state laws, UT System or UTSA rules and policies (including ethics standards, Conflicts of Interest and of Commitment, the use of UTSA resources, etc.)

II. RATIONALE

This policy is intended to protect the credibility and reputation of UTSA, and its faculty and staff by providing a transparent system of disclosure, approval, and documentation of employee activities outside UTSA (including but not limited to, engaging in outside employment or outside board service and owning certain interests in business entities) that might otherwise raise concerns about Conflicts of Interest or Conflicts of Commitment. The policy also serves the purpose of ensuring compliance with state ethics laws and Regents’ Rules. Finally, it is intended to provide the framework for rules and procedures that will clearly delineate allowable outside activity.

III. SCOPE

This policy applies to all UTSA employees and sets standards under which they may be allowed to engage in Outside Activities, Outside Board Service, or own Substantial Interests in a Business Entity.

Business Entity: Any entity recognized by law through which business for profit is conducted, including a sole proprietorship, partnership, firm, corporation, holding company, joint stock company, receivership, or trust.

Compensation: Any form of benefit, including but not limited to salary, retainer, honoraria, sponsored travel or reimbursement, intellectual property rights or royalties, or promised, deferred, or contingent interest.

Compensation does not include reimbursement for out-of-pocket expenses or sponsored travel that is usual and customary. Also excluded is travel that is reimbursed or sponsored by a federal, state, or local government agency, an institution of higher education, an academic teaching hospital, a medical center, or a research institute that is affiliated with an institution of higher education.*

A noted exception relates to compensation provided to UTSA that is designated for one or more UTSA employees and will be disclosed as compensation. When UTSA accepts a gift, grant, donation, or other compensation from a person that the person designates to be used as a salary supplement for a UTSA employee, the receiving entity shall analyze the gift, grant or donation for potential conflicts of interest. If a conflict of interest exists, UTSA will use its current processes and procedures to eliminate or manage the conflict.

Conflict of Commitment: A state in which a UTSA employee’s Outside Activities or activities on behalf of an outside association, or an activity, could directly or significantly interfere with the employee’s fulfillment of their institutional responsibilities as created by competing demands on the individual’s time allocation. It also includes the employee’s use of State property without authority in connection with Outside Activities or Outside Board Service.

Conflict of Interest: A significant outside interest of a UTSA employee or one of the employee’s Immediate Family Members that could or could appear to a reasonable person to directly or significantly affect the employee’s performance of his or her institutional responsibilities. The proper discharge of an employee’s institutional responsibilities could be directly or significantly affected if the employment, service, activity or interest: (1) might tend to influence the way the employee performs his or her institutional responsibilities, or the employee knows or should know the interest is or has been offered with the intent to influence the employee’s conduct or decisions; (2) could reasonably be expected to impair the employee’s judgment in performing his or her institutional responsibilities; or (3) might require or induce the employee to disclose confidential or proprietary information acquired through the performance of institutional responsibilities. Employees should use their judgment in determining what activities could appear to a reasonable person to affect or to interfere with their professional obligations to UTSA and should consider how reasonable individuals (including their supervisor and the general public) will view their outside interests. When in doubt in determining whether an Outside Activity or Outside Interest should be disclosed, employees should resolve the doubt in favor of disclosure.

Covered Staff: Those UTSA employees who have been determined to be exempt from the Fair Labor Standards Act and are, therefore, not entitled to overtime pay. It also includes employees designated by their vice president as having authority to exercise discretion with regard to the award of contracts or other financial transactions.

Immediate Family Members: Include the following:

a spouse;

a dependent child or stepchild or other dependent, for purposes of determining federal income tax liability during the period covered by the disclosure statement; and

a related or non-related, unmarried adult who resides in the same household as the individual and with whom the individual is financially interdependent as evidenced, for example, by the maintenance of a joint bank account, mortgage, or investments.

Nature and Extent: The “Nature and Extent” of an Outside Activity (including an outside job/employment) will include a description of major duties to be performed, the anticipated time commitment, and length of time the activity is expected to continue.

Outside Activity/ies: Faculty and Covered Staff are expected to transfer knowledge gained through professional or scholarly pursuits to applications that can benefit the general population. This practice is integral to UTSA’s mission and enriches the experiences within the university community (e.g., teaching and scholarship). For the purposes of this policy, Outside Activities include (1) those for which faculty and Covered Staff receive remuneration while not acting as employees of UTSA (also referred to as “outside employment”) or (2) those which are not considered to be part of their professional performance in their disciplines or positions and thus not reported on their periodic performance report. Examples of activities which are not considered Outside Activities because they are expected as part of professional performance include, but are not limited to, ad hoc reviewing for journals and funding agencies, presentation of colloquia and symposia at other institutions of higher education so long as these activities are not compensated beyond usual and customary expenses.

Outside Board Service: Service on any board, council, or other governing or advisory board of a business, civic, professional, social, or religious organization, whether for-profit or non-profit. All compensated Outside Board Service and service to a religious organization must be on the employee’s own time using vacation leave, compensatory time (if applicable), or other arrangement approved by the employee’s supervisor.

The following Outside Board Service may be performed on UTSA time as part of the employee’s institutional responsibilities so long as the activity:

furthers the interest of UTSA;

is service to a nonreligious organization;

is uncompensated (other than for reimbursement of usual and customary expenses);

is approved prior to commencement of the activity; and

is disclosed (by any formal university mechanism, including the employee’s periodic performance report or faculty annual report).

Exclusion for Personal Activities Participation (regardless of compensation) on Outside Boards or activity in which the service is primarily personal rather than professional in nature and is done on one’s own time is permitted without the requirement of approval or disclosure if it does not OR does not appear to a reasonable person to create a Conflict of Interest or Conflict of Commitment. Examples include boards of the following nature: a municipality; local religious congregation; neighborhood association; public, private or parochial school; political organization; social advocacy organization; youth sports or recreation league; affinity group such as the local orchid society or model train collectors club; and other similar outside boards.

Range of Compensation and/or Equity Value: The “Range of Compensation” or “Equity Value” of an outside activity will be disclosed or reported as falling within one of the following ranges:

Not compensated;

$1-$4,999;

$5,000-$9,999;

$10,000-$19,999;

Amounts between $20,000 - $100,000 by increments of $20,000; or

Amounts above $100,000 by increments of $50,000; or

If stock options in a business entity, ___ shares of common stock par value of $0.01 equaling ___% of the fully diluted value of the company at the time of disclosure.

Substantial Interest in a Business Entity: For purposes of this policy, means:

A controlling interest;

Ownership of more than 10 percent of the voting interest;

Ownership of more than $5,000 of the business’ fair market value;

A direct or indirect participating interest by shares, stock, or otherwise (regardless of whether voting rights are included) in more than 10 percent of the profits, proceeds, or capital gains; or

Service as an officer.

It does not include investments in mutual funds or retirement accounts, so long as the individual does not directly control the investment decisions made in those vehicles.

University Time: For faculty, this time is defined by the number of hours per week necessary for the performance of job duties, which include teaching, research, and service. For some staff this time is defined by a work day with set hours, and for other staff this time is defined as a work day with set hours plus on call service as needed.

*As required by the UT System under UTS 180, the definition of compensation is partially, but not completely, consistent with Public Health regulations and UTS 175 governing conflicts of interest in research (42 CFR Sec. 50.603, definition of “significant financial interest,” at (2 & 3)).

VIII. RESPONSIBILITIES

All UTSA Employees

Disclose Outside Activities, Outside Board Service, Gifts and Substantial Interests in a Business Entity as required under this policy.

Approval Authority

Reviews disclosed information and grants approvals as appropriate and as described in this policy.

When necessary, customizes a management plan in consultation with the individual submitting the disclosure and designates an individual to monitor the management plan. Submits management plan to the approval authority’s supervisor for approval.

When necessary, follows the appeals process as described in this policy.

Approval Authority's Supervisor

When necessary, reviews management plan for approval.

When necessary, addresses appeals within 10 business days as described in this policy.

Conflict of Interest / Conflict of Commitment Committee

When necessary, addresses appeals within 15 business days as described in this policy.

IX. PROCEDURES

Standards Governing Outside Activities, Outside Board Service, Gifts, and Substantial Interests
Faculty and Covered Staff engaging in an Outside Activity, Outside Board Service, or receiving or acquiring financial interests or gifts will adhere to the standards outlined below. Any UTSA employee acting as an Approval Authority will approve an Outside Activity, Outside Board Service, or the ownership or acquisition of a Substantial Interest in a Business Entity only if the standards outlined below have been satisfied.

Primary Responsibility to UTSA. The primary responsibility of UTSA employees is to accomplish the duties and responsibilities assigned to one's position of appointment.

Unmanaged Conflicts of Interest Prohibited. UTSA employees may not have a direct or indirect interest, including financial and other interests, or engage in a business transaction or professional activity, or incur any obligation of any nature that is in substantial conflict with the proper discharge of the employee’s duties for UTSA.

Conflicts of Commitment Prohibited. Activities on behalf of outside entities or individuals must not interfere with a UTSA employee’s fulfillment of his/her duties and responsibilities to UTSA. Such Conflicts of Commitment may arise regardless of the location of these work/activities (on or off campus), the type of outside entity (individual, for-profit, not-for-profit, or government), or the level of compensation (compensated or not compensated).

Use of UTSA Property and Other Resources. UTSA property and other resources may only be used as appropriate to UTSA’s mission (Regents’ Rule 30104 Sec. 8). Use of UTSA property or resources by a UTSA faculty or Covered Staff member for any Outside Activity or Outside Board Service must be explicitly approved by the appropriate UTSA Approval Authority. Note that activities that are considered to be part of the employee’s professional performance in his or her discipline or position (and so are reported on their periodic performance report or faculty annual report) may use UTSA property and other resources.

Time Allocation to Outside Activities and Outside Board Service.

Faculty. Members of the faculty have flexibility in using their time to prepare for teaching and to engage in research, service and other scholarly activity. Other responsibilities, such as presenting lectures, being available to meet with students, and participating on university committees, have more rigid time demands. During time periods in which a faculty member holds a full-time appointment, the faculty member may be permitted to engage in Outside Activities and Outside Board Service that are not included in their UTSA duties so long as such activities and service do not exceed the equivalent of 20 percent of the employee’s full-time obligation. During the time that a faculty member has a part-time appointment, any outside activities must not interfere with the execution of duties related to their part-time appointment at UTSA. During the time in which the faculty member does not have an appointment (e.g., summer for a faculty on a nine month appointment), the faculty member is not required to seek approval for Outside Activities or Outside Board Service except (a) if the activity could be perceived by a reasonable person to be a Conflict of Interest or (b) as required by HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property.

Covered Staff. During the period of full-time employment with UTSA, staff members may engage in Outside Activities and Outside Board Service so long as such activities and service do not reduce the full-time obligation to UTSA. Such Outside Activities and Board Service are considered an overload and must not exceed 20 percent of the employee’s full-time obligation to UTSA.

Required Disclosures and Prior Approvals

General rules relating to disclosures

Information reported by an employee under UTSA HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property should not be re-disclosed under this policy.

Activities reported by an employee to the appropriate Approval Authority on their periodic performance report (e.g., faculty annual report) or other formal university mechanism should not be re-disclosed under this policy and are considered pre-approved.

If an employee wishes to engage in an Outside Activity for which some or all of the relevant information is confidential, the Approving Authority may nonetheless approve the activity without requiring full written disclosure upon satisfaction that there is a compelling reason to treat the information confidentially and the activity is otherwise fully compliant with this HOP policy and all other applicable laws and UTSA and UT System policies.

Approval requirements

Approval requirements shall apply, at a minimum, to:

all full-time members of the faculty employed on a 12-month or 9-month basis;

part-time members of the faculty only if the activity appears to a reasonable person to create Conflict of Interest;

all full-time Covered Staff; and

part-time Covered Staff only if the activity appears to a reasonable person to create Conflict of Interest.

Approval is required prior to engaging in the following activities, except as noted at (c), below, for:

all outside employment or other compensated Outside Activities;

all Outside Board Service (see Sec. VII, definition of Outside Board Service, for details and exclusions); and

any uncompensated activity that could appear to a reasonable person to create a Conflict of Interest or Conflict of Commitment.

Pre-Approved Activities. The following activities are “pre-approved,” such that approval need not be obtained prior to engagement in the activity nor do these activities require electronic disclosure beyond that required under UTSA HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property. These kinds of activities must clearly contribute to UTSA’s mission or provide important elements of faculty or staff development related to their institutional responsibilities and may include, but are not limited to, the following:

Serving on a federal, state, or local government agency, committee, panel, or commission.

Acting in an editorial capacity for a professional journal.

Reviewing journal manuscripts, book manuscripts, or grant or contract proposals.

Attending and presenting talks at scholarly colloquia and conferences.

Developing scholarly communications in the form of books or journal articles, movies, television productions, and similar works, even when such activities result in financial gain, consistent with intellectual property and other applicable System and institution policies and guidelines.

Serving as a committee member, an officer, or a board member of a professional or scholarly society, or school board.

Accepting a commission for an architectural, artistic work or performance that is considered an integral part of a faculty member’s academic portfolio (e.g., a work of art or a dance performance).

Note: Outside Activities and Outside Board Service during the summer (i.e., those months in which a faculty member on a 9-month appointment does not have an employee appointment) are considered pre-approved, requiring no further approval, unless otherwise required by HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property or the Outside Activities or Outside Board Service appears to a reasonable person to create a Conflict of interest, in which case prior approval is required.

Information Required to Be Disclosed by Faculty and Covered Staff to UTSA (“Disclosed Information”). UTSA will comply with UT System requirements (See Systemwide Policy UTS 180) to submit specified Disclosed Information and any related data requests to an internal electronic database held by UT System. Note that pre-approved activities described in Section IX.B.2.c of this policy do not require electronic disclosure according to these procedures and instead should be reported as part of a Faculty or Covered Staff member’s periodic performance evaluation (e.g., faculty annual report).

Full-Time Employees. Full-time members of the faculty and full-time Covered Staff are required to disclose**:

a description of the Nature and Extent of all outside employment or other compensated activity;

a description of the Nature and Extent of Outside Board Service regardless of Compensation, (see Sec. VII, definition of Outside Board Service, for details and exclusion);

a description of the Nature and Extent of any outside (onsite or distance) teaching that is in or related to the same discipline as one’s area of UTSA teaching responsibilities; and

the following information but only if the activities could appear to a reasonable person to be a Conflict of Interest or Conflict of Commitment:

a description of the Nature and Extent of any Outside Activity, regardless of Compensation;

the range of total annual Compensation received for any compensated activity, or total annual Compensation from a single entity, if it is greater than $5,000;

a description, including the range of Compensation or interest, of any Substantial Interest in a Business Entity (as defined in Sec. VII), which should be provided no later than 30 days after acquiring the interest;

a description of gifts over $250 to the individual or his or her Immediate Family Members, which should be provided no later than 30 days after acquiring the gift. Do not include gifts received from: one’s parent, child, sibling, grandparent, or grandchild; one’s spouse or the spouse of anyone mentioned above; or the parent, child, sibling, grandparent, or grandchild of one’s spouse; and

a description of the Nature and Extent of any activity of Immediate Family Members and a description of any Substantial Interest of Immediate Family Members in a Business Entity, which should be provided no later than 30 days after acquiring the interest.

Part-Time Employees. Part-time members of the faculty and part-time members of the Covered Staff are required to disclose the Nature and Extent (but not compensation range) of any Outside Activity and any Substantial Interest in a Business Entity that appears to a reasonable person to create a Conflict of Interest. Part-time employees are not required by this policy to disclose for Immediate Family Members.

Public Display of Information. The following information will be available on a publicly accessible and searchable website hosted by UT System:

the Nature and Extent of the activity, and the range of Compensation if over $5,000, for all managed Conflicts of Interest or Conflicts of Commitment, unless deemed confidential following procedures developed in accord with Sec. IX.B.1.c, above;

all information disclosed by the President pursuant to Section 5.2 of UT System Policy UTS 180; and

instructions for gaining access to a copy of any conflict management plan via the Texas Public Information Act, except for any confidential information protected pursuant to IX.B.1.c, above.

Note: Information regarding Immediate Family Members will not be posted publicly.

Granting Approvals

Approval Requirements.

Approval Authorities will be held responsible for granting approval for Outside Activities, Outside Board Service, and Interests listed on a disclosure if:

the activity, service or interest would not give the appearance of a Conflict of Interest or, where applicable, a Conflict of Commitment, to a reasonable person; or

no Conflict of Commitment (if applicable) is found and any identified Conflict of Interest associated with Outside Activities, Board Service, or Interests has been managed in an approved management plan as described in Section IX.C.3. of this policy.

Approval Authorities should also approve the use of any UTSA resources as required and confirm that research data, confidential information or intellectual property of UTSA is being protected. (See UTSA HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property).

Approvals are expected to occur in a timely manner.

Prior approval must be received or a management plan must be in place before an employee begins work on the Outside Activity or Outside Board Service unless one of the following applies:

Retroactive Approval: In rare instances, an Outside Activity or Outside Board Service may be approved retrospectively when the employee is called upon to assist in an emergency or urgent situation where it would be impossible or unreasonable to obtain advance approval. In such cases, the activity must be fully disclosed and approval sought from the appropriate Approval Authority as soon as reasonably possible.

Prospective Approval: Some activity may also be prospectively approved, for up to one year, when an employee describes to the Approval Authority as fully as reasonably possible the general Nature and Extent of anticipated, but not confirmed, outside opportunities.

The activity is exempt from the prior approval requirement because it is identified as a pre-approved activity (see Section IX.B.2.c).

All disapprovals must be in writing. The request for approval is deemed approved if a written disapproval is not provided within twenty business days of the submission of the request.

Categories of Outside Faculty Activity. These categories can be used to guide Approval Authorities in granting approval of Outside Activity when they are disclosed by faculty.

Some activity is so integral to UTSA’s mission that it is expected as part of the faculty member’s institutional responsibilities and will be performed on University Time and may be considered pre-approved, so long as the activity does not appear to a reasonable person to create a Conflict of Interest or a Conflict of Commitment. These kinds of activities may include, but are not limited to, those listed in Section IX.B.2.c. These activities do not require documentation of prior approval and do not require electronic disclosure other than reporting in accordance with UTSA HOP policy 10.04, Conflicts of Interest in Research and Intellectual Property and instead should be reported as part of a Faculty or Covered Staff member’s periodic performance evaluation (e.g., faculty annual report).

A category of Outside Activity by faculty that, when disclosed and approved, is permitted, can be encouraged, and may be performed during University Time includes:

Engaging in professional activity such as providing expert testimony, providing consulting services, professional/clinical practice, and serving on a board of directors, but only when such activity clearly contributes to the mission of UTSA or provides important elements of faculty professional development related to the faculty member’s UTSA duties and responsibilities, and the activity does not appear to a reasonable person to create a Conflict of Interest or a Conflict of Commitment.

Faculty members may also engage in activity that does not necessarily contribute to the mission of UTSA or provide elements of faculty professional development related to their UTSA duties and responsibilities, so long as it does not appear to a reasonable person to create a Conflict of Interest or Conflict of Commitment. Any such compensated activity must take place only on the employee’s own time, without the use of UTSA property and resources (unless approved as described in Section IX.C.1.b) and is disclosed and approved as required by this policy.

Management Plans. Management plans must be in place for all faculty and Covered Staff for Outside Activities and Outside Board Service that may create a Conflict of Interest or a Conflict of Commitment before the activity begins. Management plans will be customized by the appropriate Approving Authority in consultation with the employee and will designate who will be responsible for monitoring the activity to ensure compliance with the plan. Management plans will be presented to the Approving Authority’s supervisor for review and final approval.

Rescinding Approval. An Approving Authority may rescind approval of an Outside Activity, Outside Board Service, Substantial Interest in a Business Entity, or a management plan upon receipt of information indicating that the approved activity, board service or Interest is not consistent with this policy or any applicable law or UTSA or UT System policy or the management plan has failed to ensure such consistency with policy and law or is not being followed.

Appealing an Approving Authority's Decision.

If an approval required under this policy is denied or an approval or management plan is rescinded, the faculty member or Covered Staff member may request that the Approving Authority reconsider the decision by providing an explanation in writing and submitting any documentation in support of his/her request. After reviewing all information and materials submitted by the employee, the Approving Authority, in writing, may affirm his/her original decision or grant the employee’s request.

If the Approving Authority affirms his/her original decision to deny approval or rescind a management plan, the employee may send the Approving Authority a written request asking that the decision be appealed. Within 10 business days of receiving this request, the Approving Authority will forward materials submitted by the employee and information relating to the Approving Authority’s decision to the Approving Authority’s supervisor. This supervisor will review the materials forwarded by the Approval Authority and within 10 business days make a final decision to grant the employee’s request, to affirm the Approval Authority’s decision, or take such other action as he/she determines is in the best interests of UTSA.

If the employee remains unsatisfied with the supervisor’s decision, they may request the UTSA Committee on Conflict of Interest in Research and Intellectual Property (CCOI) review the decision following the CCOI’s normal procedure. (See HOP policy 10.04 for composition and procedures of the CCOI.)

If the employee remains unsatisfied with the CCOI’s decision, he or she may access standard UTSA grievance procedures. (See UTSA HOP policy 2.34 for faculty grievance procedures and HOP policy 3.04 for grievances by non-faculty employees.)

Noncompliance with this policy may subject a UTSA employee to discipline in accordance with applicable procedures up to and including termination of employment.